Impact of ChatGPT on Market Evolution Over Two Years
ChatGPT, the advanced AI model developed by OpenAI, has made a significant impact since its public launch on November 30, 2022. This groundbreaking technology could potentially disrupt Google's search empire and drive a significant increase in productivity, contributing to global economic growth by 2030.
The success of ChatGPT has been reflected in the financial performance of companies closely associated with its development. Nvidia, a leading developer of high-performance graphics processing units (GPUs) for AI models, has seen its earnings increase by an impressive 2,600% over the past two years. This has also temporarily made Nvidia the most valuable company in the world by market cap, with its share price gaining 700%.
OpenAI itself has seen a surge in value, having been valued at $157 billion in a funding round that raised $6.6 billion in early October 2023. Key investment funds, such as SoftBank, Microsoft, Thrive Capital, Altimeter Capital, and Coatue, have been heavily investing in AI companies since ChatGPT's launch. These funds notably participated in a massive $40 billion Series F round for OpenAI in early 2025, with SoftBank leading the round with a $30 billion commitment.
The integration of generative AI into workflows across industries has created a powerful data flywheel, continuing to refine OpenAI's models. This has led to the development of new AI models, such as OpenAI o1, which demonstrates potential advancements in solving complex tasks and problems in science, coding, and math compared to previous models.
However, the rise of ChatGPT has not been without its challenges. There are environmental concerns over the vast amounts of energy and water required by AI data centers. Additionally, while ChatGPT has driven productivity gains, it has also led to job displacement, as seen in companies like Klarna, where the use of ChatGPT resulted in the displacement of 700 full-time customer support agents.
Moreover, ChatGPT, like any AI model, is not perfect. It still includes factual errors in its responses, and the promise of generative AI might not quite live up to reality. Despite these challenges, the world's top investment funds have been adding companies involved in AI to their portfolios, signaling a continued belief in the potential of this technology.
OpenAI is also considering listing on a stock exchange through an IPO, but it would first need to change its structure from a non-profit organization. For now, individual investors cannot invest directly in OpenAI, but Microsoft's significant stake in OpenAI provides indirect investment opportunities through Microsoft shares.
ChatGPT has also introduced its own ecosystem through the GPT Store, enabling developers to expand use cases, creating a virtuous cycle of innovation and demand for generative AI solutions. As this technology continues to evolve, it will be interesting to see how it reshapes the AI industry and the broader technological landscape.
Google's parent company, Alphabet, has seen its shares fall 3.3% over the past six months, partly due to the threat that ChatGPT poses to its core search engine dominance. As the AI revolution continues, it's clear that the search landscape may never be the same again.
[1] Source: VentureBeat [2] Source: Forbes [3] Source: CB Insights [4] Source: CNBC
- Investment funds have shown a continued interest in the AI sector, with key players such as SoftBank, Microsoft, Thrive Capital, Altimeter Capital, and Coatue heavily investing in AI companies following ChatGPT's launch.
- The successful development and implementation of generative AI technologies like ChatGPT have the potential to disrupt traditional business models, such as Google's search empire.
- The stock market has seen significant movements in response to groundbreaking advancements in AI technologies, exemplified by Nvidia's impressive earnings growth and temporary position as the most valuable company in the world by market cap.
